FRANKFORT, KY – The Kentucky Public Pensions Authority (KPPA) announced today that it will receive a total refund of $21.56 million from Humana, the Authority’s Medicare Plan administrator, in recognition of lower-than-expected health care costs incurred during 2022.
KPPA manages all daily activities, including administrative support, investment management, benefits counseling, and retiree health care for the County Employees Retirement System (CERS), Kentucky Employees Retirement System (KERS), and State Police Retirement System (SPRS).
CERS, KERS, and SPRS retirees have embraced the different wellness programs offered through Humana and are living longer, healthier lives, resulting in lower health care costs for both Humana and the insurance trust. These cost efficiencies create savings that are shared between KPPA and Humana in accordance with the terms of the Authority’s contract with the insurance provider.
“It’s an honor and a privilege for us at Humana to work with everyone at KPPA, and we are thrilled to see the health of KPPA retirees continuing to improve,” said Rae Godsey, M.D., Chief Medical Officer of Humana’s Group Medicare organization. “Our KPPA-Humana partnership is highly collaborative. We listen closely to the KPPA team so that we understand what matters most to them as we identify new and effective ways to support KPPA retirees. We are excited about our opportunity to continue this relationship, focused on the health and well-being of our partners here in Humana’s home state of Kentucky.”
The financial strength of all five Insurance Funds continues to improve. As of the June 30, 2022 actuarial valuation, all except the Kentucky Employees Retirement System (KERS) Nonhazardous Insurance Fund have funded ratios of over 100 percent. The KERS Nonhazardous Insurance Fund is 79.1% funded, an increase of 28.9% over Fiscal Year 2021.
“The refund is one more reason our health care and retirement trusts continue to get better funded,” said David Eager, Executive Director of the Kentucky Public Pensions Authority. “With this latest payment, KPPA has now received almost $90 million in gain share refunds since 2017. I am grateful for the retirees who focus on wellness and preventative care and to Humana for making this refund possible.”
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The Kentucky Public Pensions Authority is responsible for the investment of funds and administration of pension and health insurance benefits for over 421,000 active and retired state and local government employees, state police officers, and nonteaching staff of local school boards and regional universities.
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https://kyret.ky.gov